Exam 2: Measuring and Evaluating Performance

Which of the following illustrates an action control?

During the past month, labor wage costs at Vanadium Alloy Steel Company exceeded the budgeted amount by $18,000. This difference was most probably detected by:

The appropriate focus of an entity's mission statement is the key customer needs it intends to satisfy.

Costco Wholesale Corporation is the second-largest retailer in the world. In its annual report, the company commits itself "to continually provide our members (customers) with quality goods and services at the lowest possible prices." This statement identifying the key customer needs that Costco intends to meet is most probably an extract from the company's:

Dysfunctional consequences refer to the unintended side effects of a poorly designed measure of performance measurement.

If actual revenue exceeds planned revenue, then:

If actual operating expenses exceeds planned operating expenses, then:

Which of the following describes what an organization wants to accomplish and leads to the formulation of long-term business objectives?

Tactical goals translate the entity's vision into actionable elements to be achieved over the long run.

Your grade on a final exam is an example of a results control as opposed to an action control.

A key difference between strategic objectives and tactical goals is that:

In its vision statement, Tesla Motors, Inc., commits the company to "driving the world's transition to electric vehicles." This commitment is a:

Of the following, which does an entity attempt to accomplish over the shortest period of time?

Tesla Motors, Inc., has committed to begin delivering its new lower-priced Model 3 automobile to customers in the second half of 2017. This commitment best illustrates a:

Cost-volume-profit analysis is appropriate when examining the impact of complex changes such as outsourcing or product-line decisions.

Management accounting information is produced in a process that is highly regulated by generally accepted accounting principles.

An entity's mission statement differs from its vision statement by:

Harmony Greens Golf Club barely achieved a level of sales volume last year that allowed it to break even. Management would like to determine how operating income would be affected by a 20% reduction in the daily golf fee it charges. The most appropriate form of analysis would be:

Six Sigma College of Business offers five different courses of study. The planned enrollment in each course is 25 students. Registration for the upcoming semester of study has been recently completed. Actual enrollments for the five courses are given in the table below. Required: Prepare a simple gap analysis of Six Sigma's course enrollments.

The specific number of units that an automobile manufacturer plans to deliver in the coming month illustrates an operational goal.